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WTL - William Tell Holdings Limited - Unaudited results for the six months ended

Release Date: 17/02/2011 13:47
Code(s): WTL
Wrap Text

WTL - William Tell Holdings Limited - Unaudited results for the six months ended 31 December 2010 WILLIAM TELL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration Number: 2004/030045/06) Share Code: WTL ISIN: ZAE000098133 ("William Tell" or "the Group") www.williamtellholdings.co.za UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 Summarised Consolidated Statements Audited of Comprehensive Income Unaudited Unaudited December December June
2010 2009 2010 R`000 R`000 R`000 Revenue 92 832 74 320 139 484 Cost of sales (71 370) (60 078) (117 472) Gross profit 21 462 14 242 22 012 Other income 270 13 607 12 566 Administrative and other operating (16 473) (13 324) (61 685) expenses Operating profit / (loss) 5 259 14 525 (27 107) Investment Income 658 - 425 Foreign exchange loss (91) (32) (21) Interest paid (3 386) (3 782) (7 198) Profit / (loss) before taxation 2 440 10 711 (33 901) - - -
Taxation (756) 754 13 210 Profit / (loss) for the period 1 684 11 465 (20 691) Depreciation and amortisation for 5 579 5 075 11 126 the period Basic and diluted basic earnings / 1.3 9.2 (16.6) (loss) per share (cents) Headline and diluted headline 1.3 (1.4) (2.5) earnings / (loss) per share (cents) Reconciliation of basic earnings / (loss) to headline earnings / (loss) Basic earnings / (loss) 1 684 11 465 (20 691) Adjusted by the after tax effect of the following: - Profit on the sale of property, (27) (13 178) (7 447) plant and equipment - Impairment of property, plant and - - 25 026 equipment Headline earnings / (loss) 1 657 (1 713) (3 112) Number of ordinary shares in 125 000 125 000 125 000 issue(`000) Weighted average number of 125 000 125 000 125 000 shares(`000) Summarised Consolidated Statements Unaudited Unaudited Audited of Changes in Equity December December June 2010 2010 2009 R`000 R`000 R`000 Share Capital Balance at the beginning of the year 1 250 1 250 1 250 Shares issued during the period - - - Balance at the end of the period 1 250 1 250 1 250 Share premium Balance at the beginning of the year 179 265 179 265 179 265 Share issue expenses - - - Balance at the end of the period 179 265 179 265 179 265
Accumulated profit Balance at the beginning of the year 10 310 31 001 31 001 Profit for the period 1 684 11 465 (20 691) 11 994 42 466 10 310
Summarised Consolidated Statements Unaudited Unaudited Audited of Financial Position December December June 2010 2010 2009 R`000 R`000 R`000
ASSETS Non-current assets 217 859 271 761 221 538 Property, plant and equipment 217 844 271 719 221 506 Intangible assets 15 42 32 Current assets 85 367 68 349 68 376 Inventories 29 563 27 826 27 051 Trade and other receivables 31 711 21 682 29 971 Current taxation receivable - - - Cash and cash equivalents 24 093 18 841 11 354
Non-current assets held for sale - - 8 000 303 226 340 110 297 914
EQUITY & LIABILITIES Capital & reserves 192 509 222 981 190 825 Share capital 1 250 1 250 1 250 Share premium 179 265 179 265 179 265 Accumulated profit 11 994 42 466 10 310 Non-current liabilities 59 152 79 335 59 800 Interest bearing borrowings 43 852 60 941 54 688 Deferred Taxation 3 524 15 293 2 151 Deferred Income 11 776 3 101 2 961
Current liabilities 51 565 37 794 47 289 Trade and other payables 29 043 12 676 24 056 Interest bearing borrowings 20 644 19 082 17 347 Provisions 1 282 861 906 Current taxation payable 596 5 175 4 980 303 226 340 110 297 914
Net asset value per share (cents) 154 178 153 Capital expenditure for the period 1 615 11 393 13 522 (R`000) Summarised Consolidated Cash Flow Unaudited Unaudited Audited Statements December December June 2010 2010 2009 R`000 R`000 R`000 Net cash generated by operations 12 581 7 607 2 788 Net finance costs (2 728) (3 782) (6 773) Taxation paid (4 961) (404) (52) Cash flow from operating activities 4 892 3 421 (4 037)
Cash flow from investing activities 15 386 26 904 34 857 Cash flow from financing activities (7 539) (26 079) (34 061)
Movement in cash & cash equivalents 12 739 4 246 (3 241) Cash & cash equivalents at the 11 354 14 595 14 595 beginning of the year Cash & cash equivalents at the end 24 093 18 841 11 354 of the period Segment report This is a single segment group and no segmental reporting is provided. COMMENTARY HIGHLIGHTS * 25% revenue growth * 21% increase in gross margin * 38% increase in recurring EBITDA * 6 sales outlets opened in 6 provinces * R8.5m debt settled in this period * Gearing reduced to 34% OVERVIEW OF THE BUSINESS William Tell is a mass producer of wood-based panels. The Group is vertically integrated with all manufacturing operations consolidated on one site in the industrial area of Chamdor in Krugersdorp. Activities range from production of chipboard from wood waste, application of melamine and other decorative surfaces to production of furniture elements and ready to assemble furniture. The integration strategy was expanded through the establishment of seven regional sales outlets between April 2010 and January 2011 covering the major centres in 6 provinces. SIX MONTH OPERATIONAL REVIEW Revenue and gross margin growth of 25% and 21% respectively, were achieved in the period through increased market penetration from the new sales outlets. However, this lead to increased operating costs including non-recurring start up costs of stores opened in this period. Operating profit increased by R3.3m after excluding the once off R12.6m capital profit on the sale of the Reuven property in the comparative period. Recurring EBITDA has also increased by 38%. Stock and trade debtors increased in line with the roll out of sales outlets and escalating revenue growth to December. Debtor`s settlement periods increased as customers experienced the pressure of the current difficult trading conditions. Management continues to exercise tight control over debtor collections. During this period we received the first tranche of R9m of an approved R30m tax free cash grant from the DTI, as well as R8m proceeds from assets held for sale as at 30 June 2010. PROSPECTS We are not expecting a substantial increase in demand for our products as market conditions are expected to remain subdued but additional revenues should be generated through existing and planned sales outlets. A further tranche of R6m of the DTI tax free cash grant is expected before April 2011. DIRECTORS Warwick Lok retired as a director and employee during December 2010. We wish him a happy retirement and thank him for his considerable contribution to the development of the Group over the past 17 years. Wally Van Coller joined the operating subsidiary as Managing Director on 1 July 2010 and was appointed to the board of William Tell Holdings on 1 October 2010. Wally has a wealth of experience in managing manufacturing businesses and we look forward to his contribution to the Group. DIVIDENDS In the light of the current market conditions, the directors regard it prudent not to declare an interim dividend. SUBSEQUENT EVENTS No matters which are material to the financial affairs of the Group have occurred between the balance sheet date and the date of this report. BASIS OF PREPARATION These summarised consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), IAS 34: "Interim Financial Reporting", the AC500 series as issued by the Accounting Practices Board, the South African Companies Act, as amended, and the Listings Requirements of the JSE Limited. The principal accounting policies used in the preparation of the unaudited results for the period ended 31 December 2010 are consistent with those applied for the year ended 30 June 2010 and for the six months ended 31 December 2009. BY ORDER OF THE BOARD R B Patmore (Chairman)*, B P Lok (Chief Executive Officer), N Govender (Financial Director), W van Coller, N de Winnaar, M G Meehan* *Independent, non-executive 17 February 2011 REGISTERED ADDRESS: 31 Van Eck Street Chamdor Krugersdorp 1740 COMPANY SECRETARY: Sirkien van Schalkwyk No 1 Carlsberg 430 Nieuwenhuyzen Street Erasmuskloof, 0048 DESIGNATED AND CORPORATE ADVISOR: PSG Capital (Proprietary) Limited Ground Floor, DM Kisch House Inanda Greens Business Park 54 Wierda Road West Wierda Valley Sandton, 2196 TRANSFER SECRETARIES: Computershare Investor Services (Proprietary) Limited Ground Floor 70 Marshall Street Johannesburg, 2001 (P O Box 61051, Marshalltown, 2107) REGISTERED AUDITORS: BDO South Africa Inc. 13 Wellington Road Parktown, 2193 Date: 17/02/2011 13:47:38 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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